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State To Shore Up Pension Funding
Click here for a copy of the Memorandum of Understanding (MOU) between the parties.
“This agreement makes sense for the long term retirement security of the public sector workers we represent and the taxpayers of Connecticut,” said Ron McLellan, President of the Connecticut Employees Union Independent (CEUI)/SEIU Local 511, representing 4,000 state employees, and a member of the State Employees Retirement Commission.
Highlights of the MOU include:
"We have been raising concerns since 2000 that the current level percent of payroll system insisted upon by then-Governor Rowland was not the best way to assure stable and reliable pension funding," said Stephen Greatorex, business manager of the 3,200-member Connecticut State University branch of the American Association of University Professors (AAUP). "This agreement at last moves us to a funding system that does its job for the people of the state and the employees who serve them," added Greatorex, also a member of SERC.
"Real pensions play an important role in Connecticut’s economy by supporting jobs and generating purchasing power in our communities," said Sal Luciano, executive Director of Council 4 AFSCME, which represents 15,000 state employees. "This agreement is part of a larger policy imperative by our unions to create retirement security for all," added Luciano, another of the union representatives who sits on SERC.
State employee union leaders and the governor's administration have been in discussions over pension funding for nearly a year in an effort to smooth out the pension liability. Because the MOU does not materially change any members' retirement benefits or contributions, it was approved by the leaders of the 15 unions in the coalition:
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